Correlation Between DigitalOcean Holdings and Itron

Can any of the company-specific risk be diversified away by investing in both DigitalOcean Holdings and Itron at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DigitalOcean Holdings and Itron into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DigitalOcean Holdings and Itron Inc, you can compare the effects of market volatilities on DigitalOcean Holdings and Itron and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DigitalOcean Holdings with a short position of Itron. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigitalOcean Holdings and Itron.

Diversification Opportunities for DigitalOcean Holdings and Itron

-0.62

Correlation Coefficient

DigitalOcean Holdings  Itron

Excellent diversification

The 3 months correlation between DigitalOcean and Itron is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding DigitalOcean Holdings and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron Inc and DigitalOcean Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DigitalOcean Holdings are associated (or correlated) with Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of DigitalOcean Holdings i.e., DigitalOcean Holdings and Itron go up and down completely randomly.

Pair Corralation between DigitalOcean Holdings and Itron

Given the investment horizon of 90 days DigitalOcean Holdings is expected to generate 1.17 times more return on investment than Itron. However, DigitalOcean Holdings is 1.17 times more volatile than Itron Inc. It trades about 0.16 of its potential returns per unit of risk. Itron Inc is currently generating about -0.07 per unit of risk. If you would invest  3,432  in DigitalOcean Holdings on September 9, 2025 and sell it today you would earn a total of  1,517  from holding DigitalOcean Holdings or generate 44.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

DigitalOcean Holdings  vs.  Itron Inc

DigitalOcean Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DigitalOcean Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, DigitalOcean Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Itron Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Itron Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with DigitalOcean Holdings and Itron

The main advantage of trading using opposite DigitalOcean Holdings and Itron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigitalOcean Holdings position performs unexpectedly, Itron can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Itron will offset losses from the drop in Itron's long position.

The idea behind DigitalOcean Holdings and Itron Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.